2004 Annual Report - Concise Financial Statements

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CONCISE FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2004

	2004	2003
	$	$
CURRENT ASSETS
Cash Assets	916,897	815,070
Receivables	792,148	1,041,866
Prepayments	104,021	284,849
Inventories	97,311	132,591
TOTAL CURRENT ASSETS	1,910,377	2,274,376
NON CURRENT ASSETS
Property, Plant and Equipment	5,655,097	5,798,410
Investments	103,242	103,242
Intangibles	246,713	130,459
TOTAL NON CURRENT ASSETS	6,005,052	6,032,111
TOTAL ASSETS	7,915,429	8,306,487
CURRENT LIABILITIES
Bank Overdraft	3,318,729	829,351
Payables	3,429,844	3,334,166
Provisions	167,544	221,925
Income Received in Advance	144,218	584,471
TOTAL CURRENT LIABILITIES	7,060,335	4,969,913
NON CURRENT LIABILITIES
Interest Bearing Liabilities	1,375,000	1,676,125
Other	225,457	210,838
TOTAL NON CURRENT LIABILITIES	1,600,457	1,886,963
TOTAL LIABILITIES	8,660,792	6,856,876
NET ASSETS	(745,463)	1,449,611
EQUITY
Retained Earnings	(745,412)	1,449,562
Outside Equity Interest in Controlled Entities	49	49
TOTAL EQUITY	(745,363)	1,449,611

The above Statement of Financial Position should be read in conjunction with
the accompanying notes, discussion and analysis.

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 OCTOBER 2004

	2004	2003
	$	$
Revenue from ordinary activities	22,222,087	22,763,650
Employee benefits expenses	(11,818,644)	(11,694,874)
Depreciation and amortisation expenses	(276,939)	(279,876)
Marketing and promotional expenditure	(2,028,656)	(2,340,836)
Materials purchases and match day hospitality	(1,584,395)	(1,752,364)
Administration expenditure	(535,530)	(440,534)
Borrowing cost expense	(436,032)	(126,592)
Property maintenance	(815,427)	(698,219)
Football support expenditure	(2,545,705)	(2,359,162)
Membership expenditure	(1,931,378)	(1,643,509)
Property lease expenditure	(1,104,332)	(1,187,797)
Other expenses from ordinary activities	(1,340,023)	(1,121,987)
Net Profit / (Loss)	(2,194,974)	(882,100)

The above Statement of Financial Performance should be read in conjunction
with the accompanying notes, discussion and analysis.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2004

	2004	2003
	$	$
Cash Flows from Operating Activities
Receipts from Football Operations	6,216,874	5,577,083
Receipts from Marketing Operations	9,897,737	10,416,856
Receipts from Gaming and Social Operations	5,815,571	6,280,807
Receipts from Other Operations	10,075	67,896
Payments to Suppliers and Employees	(23,395,876)	(22,339,567)
Interest Received	14,775	19,866
Borrowing Costs	(436,032)	(126,592)
Jack Dyer Foundation Contributions	259,414	401,142
Net Cash Inflow / (Outflow) from Operating Activities	(1,617,462)	297,491
Cash Flows from Investing Activities
Payment for Property, Plant and Equipment	(218,964)	(2,109,995)
Net Cash Inflow / (Outflow) from Investing Activities	(218,964)	(2,109,995)
Cash Flows from Financing Activities
(Repayment) / Draw down of Secured Loan	(301,125)	1,076,125
(Repayment) / Draw down of Unsecured Loan	(250,000)	250,000
Repayment of Borrowings	-	(1,886)
Net Cash Inflow/(Outflow) from Financing Activities	(551,125)	1,324,239
Net Increase/(Decrease) in Cash Held	(2,387,551)	(488,265)
Cash at the Beginning of the Year	(14,281)	473,984
CASH AT THE END OF THE YEAR	(2,401,832)	(14,281)

The above statement of cash flows should be read in conjunction with the
accompanying notes, discussion and analysis.

Income Tax

Income Tax has not been provided for in the accounts as the
Company is an exempt sporting organisation in accordance
with Section 50-45 of the Income Tax Assessment Act 1997.

Richmond Cricket Club Limited

The Richmond Football Club Limited owns 51% of the
Richmond Cricket Club Limited and includes any surplus or
deficit of the cricket operations in its results. The operations
of the Cricket Club are to hold the lease of the Punt Road
Oval from the Melbourne City Council, and to be an
accredited member of the Victorian Cricket Association.

DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL STATEMENTS

The Club has recorded a net loss for the year of $2.19million.
Discussion of the result and the impact on the Club's
financial statements is set out in the accompanying
Treasurer's Report. The cash position is consistent with the
discussion of the operating results of the Club set out in the
Treasurer's Report as there has not been significant capital
expenditure during the year.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2004

The concise financial report relates to the consolidated entity
consisting of Richmond Football Club Limited and the entity it
controlled at the end of, and during, the year ended 31
October 2004. The concise financial report cannot be
expected to provide as full an understanding of the financial
performance, financial position and financing and investing
activities of the Richmond Football Club Limited and its
controlled entity as the full financial report. The accounting
policies adopted are consistent with those of the previous
year.

1. Basis of preparation of financial statements

(a) Economic Dependency

The Richmond Football Club Limited is economically
dependent on the ongoing financial assistance of the
Australian Football League ("AFL"). This ongoing assistance
provided by the AFL is in the form of a Redirection Order of
up to $4.27 million to the ANZ Bank as security for the
current borrowing facilities. The Redirection Order provided
is not an advance of funds, however is an acknowledgement
to our financiers that the annual distributions will be
received in the ordinary course of operations. The amount of
the Redirection Order equates to 12 months of AFL
distributions. A guarantee has also been provided by the AFL
to the ANZ Bank of up to $1.1 million for future distributions
from the AFL in relation to the sale of Waverley Park. Again,
this guarantee is not an advance of funds but an
acknowledgement of distributions that will be received over
the next four years.

The AFL has also agreed that it could provide access to the
Competitive Balance Fund upon receiving an application
from the Club. The Club could access up to $1.5million per
annum, however, access to the Competitive Balance Fund is
subject to the specific conditions imposed by the AFL. These
additional conditions would be agreed between the AFL and
the Club if this additional funding was requested. The
Directors are confident that there will be no necessity to
access the Competitive Balance Fund based on the actions
and plans outlined in the President and Treasurer's Reports.

(b) Going Concern

The financial report has been prepared on the basis of the
Company continuing as a going concern. The Company
currently has a deficiency in net assets and current assets in
comparison to it current liabilities. Despite this, the
Company's directors consider the going concern assumption
to be an appropriate basis for the preparation of the financial
report as the AFL has committed to the economic support
disclosed above in note 1(a) and has stated a commitment to
support the Richmond Football Club and its ongoing support
for a 16 team competition. The AFL support does not
however represent a guarantee or indemnity over the
operations of the Club beyond the guarantees already
provided. The AFL will impose conditions on any additional
economic support, such as access to the Competitive
Balance Fund, that the Club will be required to meet. Based
on these circumstances, the financial report does not include
any of the adjustments that may be necessary should the
Company be unable to continue as a going concern.

2. Segment Information


The Company operates in the sporting and leisure industry in
Australia and its predominant activity is to field a football
team in the Australian Football League.

3. Dividends

The Articles of Association specifically prohibits the payment
of any dividends to any members.

4. Revenue

	2004	2003
	$	$
Revenue from the Operating Activities:
Football	6,214,833	5,577,083
Sponsorship & Marketing	9,835,088	10,416,856
Gaming and Social	5,808,985	6,280,807
	21,858,906	22,274,746
Revenue from Outside the Operating Activities:
Interest	14,775	19,866
Jack Dyer Foundation	338,331	401,142
Other	10,075	67,896
	363,181	488,904
TOTAL REVENUE	22,222,087	22,763,650

5. Full Financial Report

Further financial information can be obtained from the full
financial report, which is available, free of charge, on request
from the company. A copy may be requested by calling
Michael Stahl on (03) 9429 5333 or emailing
mstahl@richmondfc.com.au.